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AIG, GE Declared Systemically Important

The Financial Stability Oversight Council (FSOC) voted unanimously to officially designate American International Group Inc. (AIG) and the General Electric Co. unit of GE Capital Corp. as the first nonbank financial firms to be considered systemically important and in need of additional oversight, higher capital requirements, and other federal scrutiny...
July 16, 2013

The Financial Stability Oversight Council (FSOC) voted unanimously to officially designate American International Group Inc. (AIG) and the General Electric Co. unit of GE Capital Corp. as the first nonbank financial firms to be considered systemically important and in need of additional oversight, higher capital requirements, and other federal scrutiny. The two firms join several other large banks and financial market utility firms previously labeled as systemically important. FSOC Chair and U.S. Treasury Secretary Jacob Lew said, “These designations will help protect the financial system and broader economy from the type of risks that contributed to the financial crisis.” Other nonbank financial firms are being considered for the designation as well, including Prudential Financial, which said last week it would challenge regulator’s decision to propose it be named systemically important.

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